The
Attorney General may deny the transfer of a firearm pursuant to section
922(t)(1)(B)(ii) if the Attorney General determines that the transferee is
known (or appropriately suspected) to be or have been engaged in conduct
constituting, in preparation for, in aid of, or related to terrorism, or
providing material support thereof, and the Attorney General has a reasonable
belief that the prospective transferee may use a firearm in connection with
terrorism.

;

(2)

by inserting the
following new section after section 922A:

922B.

Attorney
General’s discretion regarding applicants for firearm permits which would
qualify for the exemption provided under section 922(t)(3)

The Attorney General may determine that an
applicant for a firearm permit which would qualify for an exemption under
section 922(t) is known (or appropriately suspected) to be or have been engaged
in conduct constituting, in preparation for, in aid of, or related to
terrorism, or providing material support thereof, and the Attorney General has
a reasonable belief that the applicant may use a firearm in connection with
terrorism.

;
and

(3)

in section 921(a),
by adding at the end the following:

(36)

The term terrorism
means international terrorism as defined in section 2331(1), and
domestic terrorism as defined in section 2331(5).

(37)

The term material
support means material support or resources within the
meaning of section 2339A or 2339B.

(38)

The term responsible
person means an individual who has the power, directly or indirectly, to
direct or cause the direction of the management and policies of the applicant
or licensee pertaining to
firearms.

.

(b)

Effect of
attorney general discretionary denial through the national instant criminal
background check system (NICS) on firearms permits

Section 922(t)
of such title is amended—

(1)

in paragraph
(1)(B)(ii), by inserting or State law, or that the Attorney General has
determined to deny the transfer of a firearm pursuant to section 922A
before the semicolon;

(2)

in paragraph (2),
by inserting after or State law the following: or if the
Attorney General has not determined to deny the transfer of a firearm pursuant
to section 922A;

(3)

in paragraph
(3)(A)(i)—

(A)

by striking
and at the end of subclause (I); and

(B)

by adding at the
end the following:

(III)

was issued after a check of the
system established pursuant to paragraph
(1);

;

(4)

in paragraph
(3)(A)—

(A)

by adding
and at the end of clause (ii); and

(B)

by adding after
and below the end the following:

(iii)

the State issuing the permit agrees to deny
the permit application if such other person is the subject of a determination
by the Attorney General pursuant to section
922B;

;

(5)

in paragraph (4),
by inserting after or State law, the following: or if the
Attorney General has not determined to deny the transfer of a firearm pursuant
to section 922A,; and

(6)

in paragraph (5),
by inserting after or State law, the following: or if the
Attorney General has determined to deny the transfer of a firearm pursuant to
section 922A,.

(c)

Unlawful sale or
disposition of firearm based on attorney general discretionary
denial

Section 922(d) of such title is amended—

(1)

by striking
or at the end of paragraph (8);

(2)

by striking the
period at the end of paragraph (9) and inserting ; or;

(3)

by inserting after
paragraph (9) the following:

(10)

has been the
subject of a determination by the Attorney General pursuant to section 922A,
922B, 923(d)(1)(H), or 923(e) of this
title.

.

(d)

Attorney general
discretionary denial as prohibitor

Section 922(g) of such title
is amended—

(1)

by striking
or at the end of paragraph (8);

(2)

by striking the
comma at the end of paragraph (9) and inserting; ; or;
and

(3)

by inserting after
paragraph (9) the following:

(10)

who has received
actual notice of the Attorney General’s determination made pursuant to section
922A, 922B, 923(d)(1)(H), or 923(e) of this
title.

.

(e)

Attorney general
discretionary denial of federal firearms licenses

Section
923(d)(1) of such title is amended—

(1)

by striking
Any and inserting Except as provided in subparagraph (H),
any;

(2)

in subparagraph
(F)(iii), by striking and at the end;

(3)

in subparagraph
(G), by striking the period and inserting ; and; and

(4)

by adding at the
end the following:

(H)

The Attorney
General may deny a license application if the Attorney General determines that
the applicant (including any responsible person) is known (or appropriately
suspected) to be or have been engaged in conduct constituting, in preparation
for, in aid of, or related to terrorism, or providing material support thereof,
and the Attorney General has a reasonable belief that the applicant may use a
firearm in connection with
terrorism.

.

(f)

Discretionary
revocation of federal firearms licenses

Section 923(e) of such
title is amended—

(1)

in the 1st
sentence—

(A)

by inserting after
revoke the following: —(1); and

(B)

by striking the
period and inserting a semicolon;

(2)

in the 2nd
sentence—

(A)

by striking
The Attorney General may, after notice and opportunity for hearing,
revoke and insert (2); and

(B)

by striking the
period and inserting ; or; and

(3)

by adding at the
end the following:

(3)

any license issued
under this section if the Attorney General determines that the holder of the
license (including any responsible person) is known (or appropriately
suspected) to be or have been engaged in conduct constituting, in preparation
for, in aid of, or related to terrorism, or providing material support thereof,
and the Attorney General has a reasonable belief that the applicant may use a
firearm in connection with
terrorism.

in the 1st
sentence of paragraph (1), by inserting , except that if the denial or
revocation is pursuant to subsection (d)(1)(H) or (e)(3), then any information
on which the Attorney General relied for this determination may be withheld
from the petitioner if the Attorney General determines that disclosure of the
information would likely compromise national security before the
period; and

(2)

in paragraph (3),
by inserting after the 3rd sentence the following: With respect to any
information withheld from the aggrieved party under paragraph (1), the United
States may submit, and the court may rely on, summaries or redacted versions of
documents containing information the disclosure of which the Attorney General
has determined would likely compromise national security..

Section 925(c) of such title is amended by inserting
after the 3rd sentence the following: If receipt of a firearms by the
person would violate section 922(g)(10), any information which the Attorney
General relied on for this determination may be withheld from the applicant if
the Attorney General determines that disclosure of the information would likely
compromise national security. In responding to the petition, the United States
may submit, and the court may rely on, summaries or redacted versions of
documents containing information the disclosure of which the Attorney General
has determined would likely compromise national security..

(i)

Penalties

Section
924(k) of such title is amended—

(1)

by striking
or at the end of paragraph (2);

(2)

in paragraph (3),
by striking , or and inserting ; or; and

(3)

by inserting after
paragraph (3) the following:

(4)

constitutes an act
of terrorism (as defined in section 921(a)(36)), or material support thereof
(as defined in section 921(a)(37)),
or

.

(j)

Remedy for
erroneous denial of firearm or firearm permit exemption

Section
925A of such title is amended—

(1)

in the section
heading, by striking Remedy
for erroneous denial of firearm and inserting
Remedies;

(2)

by striking
Any person denied a firearm pursuant to subsection (s) or (t) of section
922 and inserting the following:

(a)

Except as provided
in subsection (b), any person denied a firearm pursuant to section 922(t) or
pursuant to a determination made under section
922B,

;
and

(3)

by adding after
and below the end the following:

(b)

In any case in
which the Attorney General has denied the transfer of a firearm to a
prospective transferee pursuant to section 922A or has made a determination
regarding a firearm permit applicant pursuant to section 922B, an action
challenging the determination may be brought against the United States. The
petition must be filed not later than 60 days after the petitioner has received
actual notice of the Attorney General’s determination made pursuant to section
922A or 922B. The court shall sustain the Attorney General’s determination on a
showing by the United States by a preponderance of evidence that the Attorney
General’s determination satisfied the requirements of section 922A or 922B. To
make this showing, the United States may submit, and the court may rely on,
summaries or redacted versions of documents containing information the
disclosure of which the Attorney General has determined would likely compromise
national security. On request of the petitioner or the court’s own motion, the
court may review the full, undisclosed documents ex parte and in camera. The
court shall determine whether the summaries or redacted versions, as the case
may be, are fair and accurate representations of the underlying documents. The
court shall not consider the full, undisclosed documents in deciding whether
the Attorney General’s determination satisfies the requirements of section 922A
or
922B.

.

(k)

Provision of
grounds underlying ineligibility determination by the national instant criminal
background check system

by inserting after
is ineligible to receive a firearm, the following: or the
Attorney General has made a determination regarding an applicant for a firearm
permit pursuant to section 922B of title 18, United States Code;
and

(B)

by inserting after
the system shall provide such reasons to the individual, the
following: except for any information the disclosure of which the
Attorney General has determined would likely compromise national
security; and

(2)

in subsection
(g)—

(A)

in the 1st
sentence, by inserting after subsection (g) or (n) of section 922 of
title 18, United States Code or State law the following: or if
the Attorney General has made a determination pursuant to section 922A or 922B
of such title,;

(B)

by inserting
, except any information the disclosure of which the Attorney General
has determined would likely compromise national security before the
period; and

(C)

by adding at the
end the following: Any petition for review of information withheld by
the Attorney General under this subsection shall be made in accordance with
section 925A of title 18, United States Code..

(l)

Unlawful
distribution of explosives based on attorney general discretionary
denial

Section 842(d) of such title is amended—

(1)

by striking the
period at the end of paragraph (9) and inserting ; or;
and

(2)

by adding at the
end the following:

(10)

has received
actual notice of the Attorney General’s determination made pursuant to section
843(b)(8) or (d)(2) of this
title.

.

(m)

Attorney General
discretionary denial as prohibitor

Section 842(i) of such title
is amended—

(1)

by adding
or at the end of paragraph (7); and

(2)

by inserting after
paragraph (7) the following:

(8)

who has received actual notice of the
Attorney General’s determination made pursuant to section 843(b)(8) or
(d)(2),

.

(n)

Attorney General
discretionary denial of Federal explosives licenses and
permits

Section 843(b) of such title is amended—

(1)

by striking
Upon and inserting the following: Except as provided in
paragraph (8), on; and

(2)

by inserting after paragraph (7) the
following:

(8)

The Attorney
General may deny the issuance of a permit or license to an applicant if the
Attorney General determines that the applicant or a responsible person or
employee possessor thereof is known (or appropriately suspected) to be or have
been engaged in conduct constituting, in preparation of, in aid of, or related
to terrorism, or providing material support thereof, and the Attorney General
has a reasonable belief that the person may use explosives in connection with
terrorism.

.

(o)

Attorney General
discretionary revocation of Federal explosives licenses and
permits

Section 843(d) of such title is amended—

(1)

by inserting
(1) in the first sentence after if; and

(2)

by striking the
period at the end of the first sentence and inserting the following: ;
or (2) the Attorney General determines that the licensee or holder (or any
responsible person or employee possessor thereof) is known (or appropriately
suspected) to be or have been engaged in conduct constituting, in preparation
for, in aid of, or related to terrorism, or providing material support thereof,
and that the Attorney General has a reasonable belief that the person may use
explosives in connection with terrorism..

in the 1st sentence of paragraph (1), by
inserting except that if the denial or revocation is based on a
determination under subsection (b)(8) or (d)(2), then any information which the
Attorney General relied on for the determination may be withheld from the
petitioner if the Attorney General determines that disclosure of the
information would likely compromise national security before the
period; and

(2)

in paragraph (2),
by adding at the end the following: In responding to any petition for
review of a denial or revocation based on a determination under section
843(b)(8) or (d)(2), the United States may submit, and the court may rely on,
summaries or redacted versions of documents containing information the
disclosure of which the Attorney General has determined would likely compromise
national security..

(q)

Ability To
withhold information in communications to employers

Section
843(h)(2) of such title is amended—

(1)

in subparagraph
(A), by inserting or section 843(b)(1) (on grounds of terrorism) of this
title, after section 842(i),; and

(2)

in subparagraph
(B)—

(A)

by inserting
or section 843(b)(8) after section 842(i);
and

(B)

in clause (ii), by
inserting , except that any information that the Attorney General relied
on for a determination pursuant to section 843(b)(8) may be withheld if the
Attorney General concludes that disclosure of the information would likely
compromise national security before the semicolon.

(r)

Conforming
amendment to immigration and nationality act

Section
101(a)(43)(E)(ii) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(43)(E)(ii)) is amended by striking or (5) and inserting
(5), or (10).